Connected TV Takes Over: Traditional TV Advertising Spend Set to Decline for the First Time

With streaming services booming and traditional TV viewing on the decline, the way brands connect with audiences is evolving faster than you can say "Netflix and chill." 2025 is predicted to be the first year that traditional TV advertising spend decreases. This year Connected TV (CTV) is stealing the spotlight.

Wondering why and how this seismic change in the advertising landscape affects your content supply chain? First, some background.

What is Connected TV (CTV)?

Think of CTV as TV getting an upgrade. Any television capable of connecting to the internet to stream content, whether it's a smart TV, a Roku, Amazon Fire Stick, or even a gaming console, is CTV. With the likes of Netflix, Hulu, Disney+, and Amazon Prime Video becoming household staples, CTV has made it incredibly easy for viewers to access a variety of content—no cable subscription (or waiting for prime-time slots) required.

Some platforms like Pluto TV, Tubi, and Roku Channel are completely free yet offer ad-supported streaming—a goldmine for advertisers looking to tap into expanded, highly engaged audiences.

Why Should Advertisers Care?

Consumers consume, and screen time continues to rise. Perhaps encouraged thanks to the pandemic, more people continue to opt for the flexibility and expansive libraries of CTV platforms. The result of this shift? Traditional TV ads likely don’t have the same reach anymore. (Unless we’re talking Super Bowl.) Younger audiences, especially prefer on-demand content that better aligns with their lifestyles. In 2024, the largest generational segments of CTV viewers were ages 25-34 at 39.5 million users and ages 35-44 at 39.2 million. Younger and older generations have significant representation as well — there are 19.7 million 12-to-17-year-old CTV viewers and 31.8 million among those aged 65+. "Combined with CTV's personalized advertising and the desire of all generations to view content on various screens, marketers must continue to create high-quality content suitable for both 4K TVs and smartphones,” notes APR’s 2025 Marketing Production Trends Report.

Why CTV is a Game-Changer for Advertisers

CTV campaigns aren’t just trendy—they’re targeted. Here’s what makes CTV a standout option for businesses doubling down on digital advertising strategies:

• Targeted and Personalized Ads

CTV doesn’t do "one-ad-fits-all". With detailed viewer data, you can serve specific ads to specific audience segments based on demographics, interests, and behavior. Like showing aspiring chefs an ad for cookware as they binge "MasterChef."

• ‍Interactive Experiences

CTV ads also allow for engagement. Brands are introducing QR codes, clickable overlays, and even shoppable ads. Audiences can engage directly with an ad the second a product catches their eye.

Optimized Reach and Frequency

Decide where and when you want your ads to appear and adjust as needed. With the flexibility to monitor performance and fine-tune delivery, campaign resources go exactly where they’re needed—no fluff.

The future is moving in this direction. According to industry trends, 2025 could mark the first year traditional TV ad spend drops.

Traditional TV Advertising Hits Pause

For decades, traditional TV advertising reigned supreme, but priorities have shifted. Why? A few reasons:

• Marketing Budgets are Fragmenting

Budgets must stretch not just across TV but also digital platforms, social media ads, online video, and more. What was once a single-channel focus is now a digital ecosystem.

• Changing Viewer Preferences

Netflix queues over prime-time marathons? Enough said. Streaming platforms are tough to compete with.

The result? Traditional TV is losing viewership and advertisers alike, leaving CTV as a solid contender for focused, result-driven campaigns.

Moving Forward With CTV

Succeeding in the CTV space will require brands to do more than just move ad dollars.

Here’s what to focus on:

• Invest in Data-Driven Targeting

Use analytics to understand who your audience is and serve them the ads they’ll actually enjoy (or at least not skip).

• Get Creative with Content

Shoppable ads, choose-your-own-adventure campaigns, or interactive stories—CTV gives advertisers room for creativity like never before. Go beyond “buy now” messages and make experiences.

• Proactive Cross-Channel Integration

Rather than siloing CTV as an independent platform, integrate it with social media campaigns and online video strategies for a connected, cohesive brand experience.

Is Your Business CTV-Ready?

Not sure how to get started? Build governance, create processes that can be integrated across suppliers, and monitor successes and failures. If you start small, test frequently, and constantly tweak to optimize your approach, you can optimized your marketing investment.

Need help aligning your team, agencies, and suppliers to your broader marketing content supply chain? Reach out  — staying ahead of your advertising production may just be the most rewarding trend of 2025.

REIMAGINE PRODUCTION: HOW APR CAN HELP

We advise marketers and their agencies how to best optimize their approach to content creation and creative production across the content supply chain.

Our approach to optimization of creative and production processes ensures fit for purpose solutions across 360 activations and campaigns.

We ensure your results deliver holistic value across the marketing production ecosystem, inclusive of creative integrity, continuity, transparency, process improvements, partner success, financial outcomes, risk mitigation, and collaboration.

Together, we can reimagine production. Let’s connect.